Taiwan phone maker HTC will pay licensing fees to Apple as part of its settlement with the maker of the iPhone. The WSJ's Yun-Hee Kim explains what this means for the smartphone industry.

This transcript has been automatically generated and may not be 100% accurate.

I ... the the ... his two HTC I which just reached a settlement with Apple over ... a long running patent infringement lawsuits ... I with me to discuss this is unique and our Asia technology editor for The Wall Street Journal and Hong Kong ... Kenny This is good news for a lot of investors that means that this infighting has finally stopped in at these two companies have ... kind of just a made up ... um but would instead investors are very happy HTC shares were up seven percent ... but what's this mean for HTC longer term and this is been that kind of a troubled company ... does this mean that all clear for HTC Goforth night yet so we we some major reaction to the news over the weekend that the saddle when Apple ... shares were and women of today seven percent ... the keeper mind that the shares are actually still down more than fifty percent so far this year ... and um each CCS on share price has fallen sharply ... due mainly to concerns that on their market share slipping their earnings ... is deteriorating ... and they've actually warned that in the fourth quarter revenue and margins will ... decline significantly so while this is the short term positive ... legal woes have been a major overhang on the share price ... on that if necessary not the hands for HTC ... absolutely ... exciting atmosphere and accounting in my ear ... um but what if me I think the big question is what is this mean for other Android manufacturers right people are looking at this is ... the litmus test and the precedents that are my Apple was the ACC was actually the first company that ... aam first enjoyed company that is on ... Apple sued in twenty ten ... and then as the global smartphone market your book on my kid became really think ... and Samsung started to gain more market share Apple won after Samsung ... said the key question now is when is this case actually mean for ... on the ... sale which is in the school can dispute with Apple ... I think ultimately a lot of analysts are speculating backs ... on Apple and Samsung will have just come settle ... and find a cross licensing deal is while ... because these legal battles are so costly and time ... no party has really anything to gain from it so while um you know the will continue to fight it out in various courts for ... some time I think eventually on the deal the real option for the look and found ... this to COMMENTARY who ... enter into a licensing deal just like the dude with each TCE ... accidently ... up and the one interesting thing is that if you think Apple is taking a different strategy under ten ... that was under Steve Jobs the mean as you cleanups me earlier Steve Jobs is much smaller ... um no Cretaceous when it came to light in the company's ... wares can cut appears to be taking a much more conciliatory approach night and in fact the car I found ... on Steve Jobs' keynote ... stand at the front ... straight out that you know we are going to crush the competition whoever comes in ... he ... began to threaten and ensure we'd do everything to protect our legal rights ... and um it seems like the settlement really shows that under CEO Tim Cook Apple is taking a different approach when it comes to pet litigation ... and as I mentioned earlier that all of these companies are spending so much money on legal fees that it doesn't really benefit anyone ... so it will have to see what it means for some of these other cases their ongoing cases which Samsung as I mentioned earlier and ... more teeth with Mota role as well ... aam and found that the CPM to ... the settlement agreements while wonderful thanks so much in he can ... technology editor with the Wall Street Journal and Hong Kong ... after the break were gonna take a look at tight as the ... new first lady stay with us ...